{"id":32228,"date":"2021-06-26T12:06:40","date_gmt":"2021-06-26T06:36:40","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=32228"},"modified":"2021-06-26T12:06:42","modified_gmt":"2021-06-26T06:36:42","slug":"execution-of-sale-deed-via-power-of-attorney","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/execution-of-sale-deed-via-power-of-attorney\/","title":{"rendered":"Execution of Sale Deed via Power of Attorney: Is it possible?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">There is a lot of skepticism among the people when it comes to the role of power of attorney in the execution of a <a href=\"https:\/\/corpbiz.io\/sale-deed-registration\"><strong>Sale Deed<\/strong><\/a>. If you one of those who are confronting the same issue then this blog is for you. In this write-up, we will clear all the prominent FAQs linked with the property selling via General power of Attorney. <\/p>\n\n\n\n<p>In\n2011, the Apex court of India, i.e. Supreme Court invalidates the process of transferring\nproperty title via GPA. Before we unveiled this matter in brief and reveal the\nillegality related to the same, let us understand the fundamental of the General\nPower of Attorney. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/execution-of-sale-deed-via-power-of-attorney\/#What_do_you_mean_by_Power_Of_Attorney\" >What do you mean by Power\nOf Attorney?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/execution-of-sale-deed-via-power-of-attorney\/#Steps_involved_in_the_Registration_of_Power_of_Attorney\" >Steps involved in the Registration of Power of Attorney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/execution-of-sale-deed-via-power-of-attorney\/#Role_of_Power_of_Attorney_in_the_Real_Estate_sector\" >Role of Power of Attorney in the Real Estate sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/execution-of-sale-deed-via-power-of-attorney\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_Power_Of_Attorney\"><\/span>What do you mean by Power\nOf Attorney?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A written document in which\none individual (recognized as the principal) appoints another individual to act\non his\/her behalf to perform certain legal errands. Legally, the latter one is\nalso known as an agent entrusted with the responsibility conferred by the\nformer to carries predetermined tasks. <\/p>\n\n\n\n<p>Power of Attorney is often\nconferred to permit the agent to undertake different functions on the behalf of\nthe principal, such as; <\/p>\n\n\n\n<ul><li>Overseeing\nthe tax audit<\/li><li>Executing a stock\npower<\/li><li>Maintaining\na safe deposit box. <\/li><\/ul>\n\n\n\n<p>The legality entrusted within\nthe POA dissolves in the case where<\/p>\n\n\n\n<ul><li>The principal\nis no more.<\/li><li>The principal\nbecomes incompetent irrespective of any reason. <\/li><\/ul>\n\n\n\n<p><strong><em>Remember, the principal has the vested right to revoke the POA anytime. <\/em><\/strong><\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/essential-sale-deed-components-for-property-transfer\/\">An Outlook on the Essential Sale Deed Components for Property Transfer <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_involved_in_the_Registration_of_Power_of_Attorney\"><\/span>Steps involved in the Registration of Power of Attorney <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Steps-involved-in-the-Registration-of-Power-of-Attorney.png\" alt=\"Steps involved in the Registration of Power of Attorney \" class=\"wp-image-32230\" width=\"545\" height=\"377\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Steps-involved-in-the-Registration-of-Power-of-Attorney.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Steps-involved-in-the-Registration-of-Power-of-Attorney-300x208.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Steps-involved-in-the-Registration-of-Power-of-Attorney-768x532.png 768w\" sizes=\"(max-width: 545px) 100vw, 545px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Write down the POA terms on the Rs 100 stamp paper. At this stage, the POA is recognized as a simple Power of Attorney. <\/li><li>Visit the Registrar\u2019s office (widely known as the office of sub-registrar) situated in your respective jurisdiction. <\/li><li>Next, the office of the registrar would seek the inclusion of witnesses\u2019 signatures on the POA. Remember, you would require arranging a minimum of two witnesses to serve this purpose. <\/li><li>Next, submit the self-attested real copies of address proof, <em><strong>passport<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Passport\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, Voter ID, Aadhaar Card along with the Xerox of the same. <\/li><li>The registrar will take the picture of you, the agent, and the witnesses for the records. <\/li><li>The registrar will keep the Xerox of POA in records and render one to you enclosing his\/her office registry stamp. At this phase, your simple POA will become the Registered Power of Attorney. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Power_of_Attorney_in_the_Real_Estate_sector\"><\/span>Role of Power of Attorney in the Real Estate sector <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is\nevident from the above that the Power of Attorney is not a valid legal instrument\nfor property title transfer in India. But despite this legal constraint, it is\nwidely used across Indian cities for property title transfer because it entails\nmonetary benefits for both seller and the buyer. <\/p>\n\n\n\n<ul><li>In legal parlance, a sale deed is generally\nused to serve such a purpose. Anyone who is seeking property transfer can\nexecute the sale deed and then pay the stamp duty &amp; registration charges as\napplicable. For sale deed execution, a seller is also entitled to pay the\ncapital gains tax for the given transaction. It is needless to mention that\nthese charges do not apply to someone who opts for POA instead of a sale deed. <\/li><li>From the seller\u2019s viewpoint, a\nGeneral Power of Attorney makes a successful transaction even if they lack\nclear property titles. Conversely, the transaction via a sale deed is only\npossible when the seller has a clear property title. <\/li><li>Meanwhile, from the buyer\u2019s\nviewpoint, they can purchase property at affordable rates compared to market\nprice. It implies that affordability is another important parameter that\nentices many to opt for the general Power of Attorney rather than a sale deed. <\/li><li>From a legal viewpoint, it is not\npossible for someone to sell the agricultural land for residential purposes\nwithout addressing the legal formalities of conversion. However, that\u2019s not the\ncase with the Power of Attorney. People can use it to serve such a purpose\nwithout hassling with aforesaid obligations. <\/li><li>There are other legal hassles that\nencourage people to leverage General Power Attorney for a property transaction.&nbsp; The housing schemes such as DDA, MHADA, etc, <\/li><li>The units allotted by the housing\nschemes such as DDA, MHADA usually come with a specified gestation period,\nbefore which the owner cannot sell his\/her property. But, power of attorney can\navert such complications. It allows the owner to transfer the unit without\nconsidering a gestation period. It is also perceived as a medium to investment\nin real estate. <\/li><li>In some scenarios, family members\nbestow property rights via General Power of Attorney. In many events, newbie\nhomebuyers often fall into the trap of fraudulent schemes in properties owing\nto their inexperience on the legal front. <\/li><\/ul>\n\n\n\n<p><strong><em>An overview on Supreme Court Judgement Released in 2011 <\/em><\/strong><\/p>\n\n\n\n<p><strong>According to the\njudgment\u201d A power of attorney is not a legal instrument in relation to the\nright, title or interest <\/strong>in\nimmovable property\u201d. The apex court ordered municipal institutions not to\nmutate\/register properties via POA. The Supreme Court, however, validates the\napplicability of the General Power of Attorney if the transaction is\nlegitimate. <\/p>\n\n\n\n<p>The Court further ensures\nthat nothing will discourage the affected parties from completing their title\nvia registered deeds. The said transactions shall stand legal and permits\nparties to defend possession in case of conflict under Section 53A of the\nTransfer of Property Act,\u201d<strong><\/strong><\/p>\n\n\n\n<p>Many states, after the promulgation\nof the order, forbid the registration of property via General Power of\nAttorney.&nbsp; After levying a comprehensive\nban on registration of said properties in 2012, the Delhi government permitted registration\nin favor of sons, spouses, siblings, and any other relative of the registered\nowner. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is apparent from the above information that the power of attorney is not a legal instrument for the property\u2019s transaction in India and it has been confirmed after the Supreme Court order. However, in the case of a legitimate transaction, the legal existence of POA will remain intact. The Supreme Court\u2019s judgment aimed to curb the invalid transaction by making the overall process more lucid than ever.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/sale-deed-format-know-the-process-of-drafting-a-sale-deed-in-india\/\">Sale Deed Format: Know the Process of Drafting a Sale Deed in India <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a lot of skepticism among the people when it comes to the role of power of attorney in the execution of a Sale Deed. If you one of those who are confronting the same issue then this blog is for you. In this write-up, we will clear all the prominent FAQs linked with [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":32231,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1011],"tags":[1769],"acf":{"service_id":"286"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8262,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32228"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=32228"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32228\/revisions"}],"predecessor-version":[{"id":32245,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32228\/revisions\/32245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/32231"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=32228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=32228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=32228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}